The release of any international convention is a result of compromise between countries, industries and concerned parties, which will profoundly influence the inner logic of the industry and give rise to a number of related industries. The ballast water equipment market is a multi-billion-dollar industry. However, it has reached a key stage in its life cycle, as the industry boom starts to die down.
 
The story begins with the IMO Ballast Water Management (BWM) Convention, which has given 8 September 2024 as the deadline for installing ballast water treatment systems. After 2024, ballast water equipment will become part of the massive ship manufacturing industry chain with only a limited market share left in the newbuilding market each year.
 
But how should the companies that have grown during the prosperous period respond to the new reality? Years of development and growth make it hard to stop immediately. Should they be content with the limited market or capitalize on the momentum that has accumulated over the years to cultivate a second developmental curve? ERMA FIRST, the world’s leading ballast water equipment manufacturer, provides some insights.

Eleni Polychronopoulou

Xinde Marine News:
Good to see you, Eleni. Could you please introduce yourself at first? I’ve noticed that you are working in four companies/organizations simultaneously. Could you please introduce them one by one?
 
Eleni Polychronopoulou, ERMA FIRST: Firstly, I am the Business Development Director for ERMA FIRST. ERMA FIRST is the leading ballast water equipment manufacturer. Currently, the company is seeking sustainable development and looking at how to diversify its product portfolio. For example, we recently launched BLUE CONNECT, a revolutionary alternative maritime power solution.
 
The second company I work for is EPE (Environmental Protection Engineering S.A.), and I am the Vice President there. This is a family run company with a history of more than 45 years, and we offer a full range of environmental equipment and services. This also includes emergency response services for oil and chemical spills, in addition to oil spill training certification.
 
I am also the President of METIS Cyberspace Technology. The company mainly provides innovative digital solutions to our customers. Using METIS technology, we collect real-time data from the vessels and conduct performance evaluation and predictive analysis.
 
Last but not least, I am the President of Hellenic Marine Equipment Manufacturers and Exporters (HEMEXPO). Members of the association are Greek companies that manufacture and export a great number of world-class marine equipment and technical services, which will then be applied to the construction, retrofit, maintenance and upgrade of ships and other marine infrastructures.
 
Xinde Marine:
Among the four organizations you have mentioned, the most well-known company is ERMA FIRST. So, let’s start with ballast water equipment. How do you view the status and future prospects of its market?
 
Eleni Polychronopoulou, ERMA FIRST: By September next year, the BWTS market will start to decline. In accordance with the IMO BWM Convention, all existing vessels must have ballast water management equipment installed by 8 September 2024. Maybe the peak will last a few months longer, but it will come to an end. After that, the only thing left really is the newbuilding market, as new vessels will still need to install BWTS equipment.
 
Therefore, I think the future of ballast water equipment will be bound to the newbuilding market.
 
The other possibility is the maintenance and repair market. For example, the earliest ballast water equipment installed may not be performing as well anymore because of outdated technology or wear and tear that has occurred over time. We think there will be some potential here, but it will be limited.
 
Xinde Marine News:
How does the market success of ballast water treatment equipment help your transformation? What advantages will you have in developing other marine technologies?
 
Eleni Polychronopoulou, ERMA FIRST: We have established a very concrete foundation over these years and have a worldwide sales, service and installation network. We also have a group of brilliant engineers in our headquarters and our project management team has considerable expertise, providing us with a huge advantage during the market’s transformation.
 
We have extensive experience in retrofitting and installing vessel equipment. Over the next year, the number of vessels we have upgraded will hit 4,000. This experience is of great significance, as it has provided us with a deep understanding of new equipment installation and this experience is very valuable. Therefore, we are now looking at existing networks and the expertise ERMA FIRST has gained to introduce new products.
 
Xinde Marine:
Last year, ERMA FIRST launched BLUE CONNECT. How is the market performance? Could you further explain its role in shipping decarbonization?
 
Eleni Polychronopoulou, ERMA FIRST: So far, we have some projects that are at various stages, and we are also preparing a few BLUE CONNECT systems for installation.
 
BLUE CONNECT facilitates a seamless electrical grid connection between vessels and ports, allowing vessels to completely shut down their auxiliary diesel engines and generators while at berth, and instead draw all of the power it needs to support the hotel load from the shore. This reduces noise and vibrations and completely eliminates the emission of particulate matter, carbon dioxide, nitrogen oxides, sulfur oxides and other volatile organic compounds while at berth.
 
Furthermore, if the electricity is generated from renewable energy, then the vessels at port can realise a true sense of net-zero emissions.
 
BLUE CONNECT is suitable for both retrofitting vessels and newbuilds. To provide maximum flexibility for ship operators during installation and berthing, it can be installed as an integrated system onboard, or provided as a containerized system that can be installed on either side of the vessel and easily plugged in.



Xinde Marine News: 
In shipping decarbonization, what else can you provide to help the industry?
 
Eleni Polychronopoulou, ERMA FIRST: We have already started a CCS（Carbon Capture System） research and development project and plan to fully deploy CCS products in the second half of 2023. Carbon Capture Systems, such as desulfurization towers, remove carbon dioxide directly from the ship's exhaust. We are also assessing the ability of CCS to work in limited conditions and the cost effectiveness of these solutions.
 
We also have some Energy Saving Devices (ESDs) in development.
 
Xinde Marine News: 
Could you introduce METIS? METIS Cyberspace Technology is more like an Internet or data company which are very different from your former business. Why you want to have such a company?
 
Eleni Polychronopoulou, ERMA FIRST: When ERMA FIRST was founded, we knew the ballast water equipment market would not last for a very long time. So, we planned to develop the company in two directions. The first is in the direction of decarbonization, which we have already started. The second is digitalization. The shipping industry needs new digital solutions, and that’s why we decided to acquire the company in 2019.
 
In the future, we plan to develop more computational models that will enable more possibilities for on-board data, including fuel consumption optimization, hull and propeller fouling analysis, real-time engine room monitoring, route optimization, total emissions management, and range analysis, for example.
 
At the same time, we also want to provide better analytical services for optimization and forecasting to ensure that shipowners get the most out of the METIS system.
 
Xinde Marine News: 
Greece is still a country with the most ship owners. But Greek ship owners have a reputation for being low-key and conservative, not pioneers of decarbonisation. How do you see Greek shipowners applying and investing in new technologies?
 
Eleni Polychronopoulou, ERMA FIRST: We are now seeing more and more Greek shipowners who are very open and eager to adopt new technologies. While they may not be the first movers, they are certainly looking for new solutions.
 
They are very cautious, but they have to be careful because any decision about a ship is significant. You must have evidence and references to prove these new initiatives and solutions will be effective.
 
In other countries, such as Singapore, we see a policy framework with government support. A framework for industrial development formulated by government is very important, and Greece unfortunately does not have one yet. But regardless, Greek shipowners have done a very good job of adopting new technology.

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